Indian renewable energy companies are looking for more interest from investors, which makes it a good time for them to grow money. Aalok Shah, who works at Rothschild & Co., said that there are many deals happening in this market. India is working towards having 500 gigawatts (GW) of renewable energy by 2030.
This means there are many Mergers and Acquisitions (M&A) and activities of fundraising going on. In the last year, about $3 billion worth of deals happened in India’s renewable energy sector, with both strategic and financial investors being very active.
Rothschild & Co. has helped with more than 10 deals in this space. For example, they played an important role in the CleanMax deal where Brookfield, a Canadian investment firm, invested $360 million. He also mentioned that there is a lot of activity in this area, and we will see more deals in the coming months because many transactions are in the final stages.
Right now, there are about 12 different deals in the market. Many funds are leaving because they have reached the end of their holding period, mainly European players who are recycling their capital.
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In the financial year 2024, about $4 billion was invested in India’s renewable energy sector. India added 18 GW of renewable energy capacity last year, but this is less than the government’s target of adding 50 GW each year to reach the 500 GW goal by 2030.
Some big deals include Brookfield’s $845 million investment with Axis Energy Ventures and TotalEnergies’ $300 million investment with Adani Green Energy. Between the years 2014-2021, the renewable energy sector in India received $70 billion in investments.
Despite this, investor interest is still growing. He said that Middle Eastern and Asian investors are becoming more interested because of favorable government policies and growth potential.
India’s current renewable energy capacity is 180.79 GW, with solar power leading. Companies like JSW Energy and Adani Group have reported big investments to increase their generation capacity by 2030.
Big companies are raising money by issuing shares to investors. He said that the current valuations are good for raising capital, and there is a lot of demand from investors looking to invest in clean energy stocks. The sector will need about $370 billion by 2030 for renewable energy and related infrastructure.
Shah also added that from 2025-2027, green bonds worth $7 billion will mature and may need refinancing. Companies are refinancing their overseas deficit with rupee bonds because interest rates in the US and Europe have gone up, making it easier to borrow in India.
Last month, the government budget gave Rs 19,100 crore to the Ministry of New and Renewable Energy, a 46% increase. Shah said this will help add more clean energy, but private capital will also be needed. About $370 billion in debt and equity will be required in the sector.
Conclusion
Indian renewable energy companies are getting more investments. Deals worth $3 billion happened last year. The goal is to have 500 GW by 2030. Big investments are being made, and more are expected. The sector needs about $370 billion by 2030. The government and private investors are both important for this growth.
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People May Ask
Is IREDA a government company?
Yes, IREDA is a government company. The government of India owns it and works under the Ministry of New and Renewable Energy (MNRE). IREDA was started in 1987 to help develop renewable energy projects. It gives financial support to these projects.
Who promotes IREDA?
The government of India promotes IREDA. The government owns a large part of the company and manages it through the Ministry of New and Renewable Energy.
What is the target price of IREDA shares in 2025?
It is hard to expect the exact price of IREDA shares in 2025. Many things like market conditions, how the company is doing, and the economy can affect the price. Experts use different methods to calculate future prices, so the forecasts can change. For accurate information, it is best to check new financial reports or talk to a financial advisor.
Is IREDA overvalued?
To know if IREDA is overvalued, we need to check its earnings, revenue growth, market share, and how well its sector is doing. Latest data shows that IREDA is financially strong with good growth in its loan sanctions and profits.
